Copper prices edged higher to Rs 519.55 per kg on September 4 as participants increased their long positions.
The US unemployment rate dropped sharply in August to 8.4 percent from 10.2 percent as job growth moderated as businesses added fewer jobs.
Copper stock at warehouses accredited with the London Metal Exchange (LME) declined 325 tonne on September 3 to hit the lowest since December 2005.
Base metal prices have been under pressure for the last couple of sessions on the back of a stronger dollar and risk aversion that has hit risky commodities hard.
In the futures market, copper for September delivery touched an intraday high of Rs 519.90 and a low of Rs 515.70 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 486 and a high of Rs 531.
Copper for September delivery gained Rs 4.5, or 0.87 percent, to Rs 519.55 per kg at 19:06 hours on a business turnover of 5,099 lots. The same for October delivery jumped 3.4, or 0.66 percent, to Rs 515.85 per kg on a turnover of 301 lots.
The value of September and October’s contracts traded so far is Rs 1,615.80 crore and Rs 12.98 crore, respectively.
Axis Securities advised its clients to buy September copper at Rs 517 with a stop-loss below Rs 514 and a target of Rs 521.
At 1338 (GMT), the red metal rose 1.64 percent at $6,691.25 per tonne in London.